Legislative Reform Programme (“LRP”)

This page provides information on how you and your firm may be affected by the Legislative Reform Programme (LRP) that will come into force on 15 January 2020. 

The GFSC will update this webpage on a regular basis.  Please subscribe to the GFSC RSS feeds for the latest LRP information.

For any enquiries, please email LRP@gfsc.gi

 

What is the LRP?

HM Government of Gibraltar (HMGoG) published the Financial Services Bill in the Gazette on 30 May 2019 and was passed by Parliament at the beginning of July 2019, the key part of the Legislative Reform Programme (LRP). HMGoG has announced that the Act and the LRP Regulations will be coming into effect on 15 January 2020. 

The GFSC worked closely with HMGoG in the development and drafting of the Bill. The Bill provides a legislative framework for all financial services sectors that fall within the GFSC’s supervisory perimeter.

The LRP consolidates and rationalises over 90 financial services legislative instruments into one Act and additional supporting, sector specific regulations.

There are 41 sets of Regulations and the drafts are available here. The LRP Regulations do not change the substance of the current legislation they derive from and they remain similar. 

The LRP has concurrently implemented all EU legislation transpositions and local legislative initiatives during the lifetime of the programme. 

The LRP, through the new Financial Services Bill, provides a clear, more navigable and accessible legislative framework for financial services that will facilitate innovation. 

The GFSC held LRP industry sessions on the new Financial Services Bill during the last week of June. These were delivered to the different industry sectors and provided an overview of the LRP and the main areas of change introduced by the Bill. 

Slides delivered at these sessions are available here.  

Please note that the Regulated Individual & Regulated Functions slide (Slide 4) has been updated following changes to the Bill in a letter of amendment (both the Bill and the letter of amendment were passed by Parliament in July 2019). The change converts the Schedule 15 list of functions (previously a proposed list of examples of significant influence functions) into an additional list of regulated functions that are mandatory, but limited to certain sectors. Unlike the other regulated functions, these can be waived by the GFSC and will only apply if relevant to the regulated activity of the firm.  Non-executive directors, who were previously listed on the Schedule 15, have now been removed and will only require pre-approval if they perform one of the specified regulated functions. The significant influence definition has also been changed, making it clearer in terms of who it would apply to.

A consolidated Bill, including the amendments mentioned, is available here.

Key features of the LRP

The LRP will bring:

• A harmonised approach to authorisation and obtaining permission to carry on regulated activities 

• A Regulated Individuals’ Regime 

• A new Decision Making Committee 

• Procedural clarity and consistency across the board 

• Harmonised cross-sectoral powers and related processes 

What are the key changes? 

  • Regulated Individuals

  • Permissions Regime

  • Decision Making Committee

Information on the key changes can be found on the pages located at the top of this page.